Bull Market vs. Bear Market?
What You Need to Know
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The stock market can seem like a game of chance sometimes,
But what if I told you that this so-called “randomness” is actually a well-studied lifecycle?
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You can’t have failed to notice that the economy goes through booms and busts,
and these are known as bull markets and bear markets for our investments.
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What Is a Bull Market?
It’s a time when investors see their investments skyrocket in value and can find the most opportunities for profit-making since everything is booming.
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What Is a Bear Market?
The mechanisms here are very similar to those found in a bull market, except for everything happens in reverse.
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Bull markets and bear markets shouldn’t be looked at in isolation — they both form part of the economic cycle.
Understanding Bull Markets and Bear Markets
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then, after it reaches its peak, it creeps into a bear market.
During the economy’s expansion, the bull market is in full swing;
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As we’ve discussed already, bull and bear markets can refer to any kinds of investments, assets, or commodities,
so at any given moment, there may be a bull market for cryptocurrencies yet a bear market for stocks.
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